Apple sales slip, costing CEO Tim Cook's paycheck

Apple CEO Tim Cook saw his pay cut in 2016 after Apple failed to
meet sales goals thanks largely to sluggish iPhone sales. It was the
first time sales of the iPhone declined since it was introduced nine
years ago. File Photo by Terry Schmitt/UPI

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Apple CEO Tim Cook's
annual compensation took a 15 percent hit in 2016 after the company
failed to meet sales and revenue targets for the first time since 2009,
filings show.

Cook's annual cash bonus is tied to the tech
giant meeting financial goals. Flagging sales of its signature iPhone,
especially in China, were to blame for the less-than-expected sales
numbers for the fiscal year, The Wall Street Journal reported.

In all, the company said
annual sales were $215.6 billion, 3.7 percent below its target. Its
operating income was $60 billion, 0.5 percent off the company's target,
Apple said in regulatory filings for the fiscal year that ended in
September. It was the company's first decrease in annual revenue in 15
years.

Apple overestimated global appetite for its
iPhone 6S, released in early 2016. Domestic sales for iPhones dipped for
the first time since Apple introduced the world's most popular
smartphone. In particular, Chinese iPhone sales decreased amid increased
competition from lower-cost Chinese smartphone companies that saw sales
jump by 87 percent in 2016.

Apple was also plagued by problems rolling out
its wireless headphones, which got to market two months later than
expected. Priced at $159, the headphones were crucial to the rollout of
the iPhone 7, the design of which eliminated a headphone port, making
Bluetooth headphones the only option for personal listening using the
device. Still, demand for the iPhone 7 and the larger iPhone 7 Plus
exceeded supply, delaying purchases. Some of those sales will be
reflected in the company's Fiscal 2017 sales numbers.

While sales of the Apple Watch were strong and
revenue from its streaming services iTunes and Apple TV were not enough
to offset the lagging iPhone sales, which comprised 63 percent of the
company's total sales revenue.

Still, Apple remains by far the world's most
valuable company, with a market capitalization of $600 billion. It also
benefitted from the disastrous rollout of chief competitor Samsung's
signature Galaxy Note 7 smartphone, which has faced global recalls after
batteries began exploding or starting on fire.

Cook's salary for 2016 was $8.75 million, down from $10.3 million in 2015.